FLEXIBILITY OR NECESSITY? THE GIG ECONOMY’S GROWING ROLE IN TOUGH TIMES
As the job market slows, more Americans are turning to gig work for extra income and flexibility, underscoring the gig economy as both a safety net and a sign of shifting labor market conditions, according to Goldman Sachs.
Platform-based gig work, such as delivery and rideshare in names like Uber 
UBER remains steady even as the broader labor market cools, with hours rising particularly in cities where payroll growth has slowed. This points to more workers using gig jobs to cushion reduced earnings.
Goldman Sachs notes that gig workers are recorded differently in employment surveys—some appear on company payrolls, while others are self-employed and only show up in household surveys. Sporadic gig work, or work viewed as a hobby, often goes unreported, meaning some gig workers are classified as unemployed or out of the labor force.
The brokerage underlines that lower-wage workers facing unstable income often turn to gigs, with Survey of Informal Work Participation (SIWP) data showing 20% took up gig work after pay cuts, job loss, or reduced hours.
The brokerage highlights that immigrants play a major role, making up 20–50% of gig workers. In 2024, gig wages grew fastest in cities with more immigrants, suggesting the gig labor market tightened most in areas hit hardest by this year’s immigration decline.
Although demand for gig services may fall in a recession, gig work can still provide income for many, even if earnings per worker decline.
Overall, gig work continues to rise where traditional jobs falter, offering a vital cushion for many Americans amid rising economic uncertainty.